Wages grew at a record annual pace between April and June, according to new figures from the Office for National Statistics.
Regular pay grew by 7.8%, the highest annual growth rate since comparable records began in 2001.
Inflation, which measures the pace at which prices are rising, has eased but remains relatively high at 7.9%.
But Darren Morgan from the ONS said Tuesday’s figures suggested “people’s real pay is recovering”.
Mr Morgan, the ONS’s director of economic statistics, said that basic pay “is growing at its fastest since current records began”.
“Coupled with lower inflation, this means the position on people’s real pay is recovering and now looks a bit better than a few months back.”
New inflation figures are due out on Wednesday and are expected to show price growth slowed again during July.
Simon French, chief economist at Panmure Gordon, said that inflation could fall to 7% or even 6.8%. However, that remains far higher than the Bank of England’s target to keep inflation at 2%.
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